Selling Your Home: A Guide to the Home Sale Process

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Selling Your Home and how I can help you All contents of this e-book are the property of shannon foster-boline, real estate professional- not for sale, copy or distribution

description

Expert Real Estate Broker Shannon Foster-Boline, created this guide for potential home sellers to explain what will happen throughout the sales process. Starting with market preparation through to closing, Shannon provides practical advice and insight to reveal the intricacies of the "home selling life cycle". *Please note: Some of these items may be specific to the state of Tennessee, check with a local real estate broker for more information regarding the laws in your state.

Transcript of Selling Your Home: A Guide to the Home Sale Process

Page 1: Selling Your Home: A Guide to the Home Sale Process

Selling Your Home and how I can help you

All contents of this e-book are the property of shannon foster-boline, real estate professional- not for sale, copy or distribution

Page 2: Selling Your Home: A Guide to the Home Sale Process

Set yourself up for success by considering the following:

• factors that effect Market Value

• Absorption rate & a CMA

• correctly Pricing a property

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What effects the market value of your property?

physical qualities of your property

location in the city or county

Age & condition of the house

Size of house & Floor plan

lot size and quality

architectural style of the home

vs

the market competition

the number of similar properties for sale

the prices of similar homes

other Sellers’ motivation & ability to negotiate

physical condition of the property

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!

certain factors have no effect on the current value of your property: !

original price paid

the price you originally paid for the property

needed proceeds

the cash you need or want from the sale

opinions

what other people say the property is worth

While they may effect your decision to sell or not...

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How long does it take to sell a property?!!location

that’s right- the old adage “location, location location” is the number one driving force. And while you can not change the location, your price should reflect the desirability of an area to potential buyers.

competition

sometimes it will work to drive a price higher and sometimes it will work to make a price lower. either way, know your competition, what is out there matters because it will effect the buyers perception of value.

timing

the market fluctuates continually and it may be either a “seller” or “buyers” market. Market conditions can not be manipulated.

condition

the condition of the property effects how quickly it sells and at what price. Maximizing the appearance and condition of the property in advance can lessen time on market and expedite the sales process.

terms

terms refer to some of the conditions of the sale, such as closing costs assistance, home warranties, closing dates etc. The more flexibility you have to negotiate the terms of the sale, the more leverage you have.

It depends on the balance of a few key factors how fast your property will move.

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a Comparative Market Analysis “CMA”, is one method to help you determine the potential listing price of your

property.

CMA’s Consider!

recently sold properties

Homes currently for sale

Did not sell

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absorption rate is what helps you to correctly position your property in

the market

Absorption Rate Considers

sold properties

currently for sale

average sold per month

Market flow

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CURRENTLY FOR SALE

Properties that are currently available on the market. These properties should be similar in size, age,

and within a certain proximity from the seller’s property. This gives sellers an idea of the

competition but does not indicate what the market will actually bear. Just because you say it is

worth X amount doesn’t mean the buyers agree.

RECENTLY SOLD

Comparing at least three to five recently sold, similar properties, demonstrates what buyers have

actually paid for similar homes. This is an example of what the market will actually bear in terms of

price paid.

DID NOT SELL

Demonstrates what buyers have NOT been willing to pay under current market conditions.

ABSORPTION RATE

Looks at the number of properties on the market in a particular neighborhood over a given time

period and how many of those houses are selling each month. The Real Estate Professional will be

able to calculate the months of supply in a particular neighborhood and give you an estimate of

your likeliness to sell at a specific price point. This method considers location and velocity as a

way to determine a pricing strategy.

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Facts of Selling- The Market is the ProblemBUYERS buy the best value: With the ease of internet shopping you can be certain that now, more than ever, Home Buyers compare properties. They will not pay more for one home than they could pay for another similar property. !

REALISTIC PRICES ATTRACT BUYERS ATTENTION:

The price which your house is marketed must attract enough attention among buyers to generate showings and interest. If you are priced too high then buyers in your actual price range may never see the house. Over pricing leads buyers to think the seller might be unwilling to negotiate so they won’t even take the time to look or make an offer.

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Pricing Your Property

if your property is priced right initially, more buyers will be interested when it first goes on the market

!

buyers will base their selection on the market value, not asking price, it stands reason that more buyers will consider properties that are priced at market value. !

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Now that you have decided to sell let’s talk about…

Getting Your Property on the Market

!

• preparing the house

• Showing the home

• Your online presence

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Putting on the Ritz to sell

!

Did you know? Within 15 seconds a Buyer has developed an opinion of your property. look at your house through a “Buyers eyes” and consider changes and enhancements that give the right first impression!

-Keep grass mowed, flower beds mulched, and weeds pulled-Pick up lawn tools, newspapers, toys and other miscellaneous items -Sweep sidewalks and walkways-Clean up after pets -Touch up paint on doors and mailboxes-Repair any screens or windows that are damaged-Replace broken light fixtures and light bulbs-Clear gutters of debris-Plant some seasonal flowers in beds or planters to give the yard some color

Exterior

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Interior Preparations

-Start with a good spring cleaning and then a light cleaning will work well before showings-Turn off the television; play soft background music-Prepare tables and/or bedrooms with fresh flowers -Open drapes and shades, as well as turn on lights to make your house look bright and cheerful -Set a comfortable temperature for the house

-Keep pets out of the way; confine them to a crate or a garage area for the duration of the showing- even if they are friendly-Clean bathroom and kitchen surfaces and set out clean towels-Make a quick pass with a broom and a Swiffer type wet mop

-ODORS: eliminate them! Make sure there are no pet, cooking, or other unpleasant odors. Use a pleasant room fragrance- stay away from florals and choose neutral or warm scents (think fresh linen or vanilla) -Secure valuables such as jewelry, prescriptions, items of special significance and weapons. !!

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Show Timethe most likely source of a buyer is by another real estate agent. showings by an agent with a pre-qualified buyer client is very important to garnering an offer.

!advance notice- once your house is on the market, it may become stressful keeping the house “showing ready”. you should receive up to a few days advance notice for showings but it is best to be ready for something as quick as an hours notice. i have literally called to show a house that we were driving by and ended up selling it. be ready and be flexible.

how will you be notified of showings- talk with your agent about how they schedule showings. Will they be fielding all the calls or is there a call center? can you block of certain days or times? do you get showing feedback and reports? if so, how often?

mobile showings- more buyers these days are going mobile! Through technology such as texting, video, and mobile websites, buyers can “see” your house before they ever step inside. make sure your listing agent is prepared to present the best mobile face to potential buyers.

what if...?- someone asks to see your property and they are not working with an agent? you should refer them to your listing agent.

!!

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Your Online Presence!!

make your home available...aside from standard

websites i also use social media sites such as facebook, twitter,

Google+ and instagram to promote listings and

engage with potential buyers.

!

Ask your potential listing agent what they will do to enhance your online presence. It is not a, “nice to have” marketing tactic, an online presence is a necessity.

after listing a home for sale i ensure my client’s property has the broadest online exposure possible. i place a property on over 35 websites including my personal site, www.foster-the american-dream.com.

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Negotiating the Deal

1.receiving & negotiating the offer !

2.inspections !

3.appraisal

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after you receive an offer, you will either accept it as is, or you

will make a counter offer.

Negotiating the Offer

• don’t take it personally

• don’t make it personal

• to have a successful negotiation means an ability to make some compromises on both sides of the deal

•Don’t post updates/details of the sale on social media sites like facebook, twitter etc.

•remember the big picture. don’t walk a buyer over a small amount.

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Inspections

once everyone agrees to the terms of the sale you have a binding agreement. the inspection period begins the day after the offer was accepted.

!!the buyer’s agent will coordinate the day and time of the inspection with your agent. it is usually within 10-14 days of the binding agreement date.

!during the time frame you agreed upon in the offer, it is recommended for buyers to have a home inspection and wood destroying insect report completed at their expense. your responsibility as a seller is to have the utilities turned on and all areas of the house accessible for the inspection.

!!after the buyer gets the results, they will ask you to either make repairs, terminate the deal or accept it as is. there are specific criteria that must be met to terminate without

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Appraisal• any buyer that is purchasing a home with a loan will have an appraisal of

the property completed at their expense. you do not need to be present for the appraisal but you should have your home available. your listing agent should meet the appraiser at the house.

!• if the buyers are getting a fha/Va loan, then the house must meet

specific criteria. If the appraiser requires additional repairs, then you must make those repairs in order for the buyer to receive their fha/va financing.

!• the appraisal is ordered by a lender through a third party provider. Since

2008 the appraisal guidelines have changed, and with the drop in home values since 2007, it is more frequent that homes do not appraise at the offer price. partner with you real estate professional should this happen.

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Almost Doneafter preparing the house to sell, negotiating an offer, inspections and appraisals, the finish line is in sight! so, what’s left?

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final walkthrough- the buyers will conduct a final walkthrough before closing. You will have specified in the purchase & sale agreement how many days before closing this would be done.

during the walkthrough, buyers will check for completion of the requested repairs & ensure the house is in same or better condition.

utilities- prepare to switch or shut off utilities and/or garbage services before closing.

it is helpful to provide your listing agent with the names and numbers of utility services you when preparing the house to go on the market.

closing- whichever title company is used to close the sale will ask you to bring certain items to closing. Commonly they are:

state issued identification & a cashier’s check for any amount owed.

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Frequently Asked Questions• can i speak directly to the buyers? Once you and your agent have a listing

agreement, you should let your agent speak with the buyer or the buyer’s agent. it is like the old adage about “too many cooks in the kitchen”. you may inadvertently put yourself at a disadvantage by interfering in communication.

• How long does it take to close on a house? After you have accepted an offer, the standard time is 30-45 days. If the buyers are using fha/va financing then it is usually a minimum of 45 days.

• Does my listing agent need to be present during showings? no, they are not typically present. if you own a specialty property, or a high end luxury property, then you can discuss the possibility of having your agent present for showings at the time of listing your property.

• what about open houses- do they work? This is just my opinion and my experience. open houses tend to bring neighbors and people that are “kicking tires”. the likelihood of someone attending an open house and buying that same house is usually about 1%. ask your agent upfront if they will do open houses.

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Why Use a Real Estate Professional?

• to help you properly price and position your house for sale in a dynamic market

• aside from listing the house in the MLS, they will market your home in a variety of mediums (print, online, among fellow brokers etc)

• they have a network of professionals such as handymen, lenders, inspectors and title companies that are necessary to smoothly close a sale

• they ensure showings are properly scheduled & provide valuable feedback

• help to negotiate the offer on your behalf & in your best interests

• they help you to sell your house and get where you want to go on time

• help you to avoid legal pitfalls

• provide expert advice, complete necessary paperwork and provide solutions

• keep the sales process on track and act as liaison between the lender, buyers’ agent, title company & Yourself

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I am proud to provide my sellers with a personalized and highly professional approach to their real estate needs. In addition to

my personal service, you will also gain the expertise and support of my local brokerage, Coldwell Banker Wallace & Wallace.

if you are currently considering the possibility of selling your house, we can arrange a time for me to tour

your property, and then we will review my selling strategy and marketing plan for your property.

the services I offer, which include marketing your home with cutting edge technology, are combined

with my straightforward, common sense approach to the business of selling a home.

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foster the american dream

Let’s Get Started Todayshannon foster-Boline

broker, abr®, sres®, AHWD, GRI

Five Star Award for Professionalism 2013

coldwell banker wallace& wallace, realtors®

124 n winston rd

knoxville, tn 37919

o: 865.693.1111 each office is independently owned & operated

e: [email protected] web: www.fostertheamericandream.com !